ECB: Lane says further rate rise possible despite US-Iran deal
Although falling, energy prices remain well above pre-war levels
The ECB could raise interest rates again despite the “positive” news of a possible final peace agreement between the United States and Iran. This was stated by the ECB’s chief economist, Philip Lane, speaking at Reuters Next Europe. Lane noted that, following the announcement of the preliminary agreement between Washington and Tehran, energy prices have fallen but remain above the levels seen before the outbreak of the war, and he did not rule out further action on interest rates. “Whether we do more or whether we stay at the new level will depend on the incoming data,” he said.
His comments confirm the ECB’s stance that decisions will continue to be taken on a meeting-by-meeting basis, taking into account developments in economic data and inflation. “We will continue to be proactive in our monetary policy, in line with the evolving risk landscape.”
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